Which condition exists at a price of $1? A) Surplus B) Stable market C) Equilibrium D) Shortage
Understand the Problem
The question is asking which economic condition is present when the price of a good is set at $1. It lists different possibilities such as surplus, stable market, equilibrium, and shortage, and we need to determine which one correctly describes the situation at that price.
Answer
Shortage
The final answer is D) Shortage
Answer for screen readers
The final answer is D) Shortage
More Information
At a price of $1, there is a shortage because the quantity demanded exceeds the quantity supplied. A shortage means the price is below the equilibrium, causing more demand than can be fulfilled with available supply.
Tips
Common mistakes include assuming a surplus when a price is lower than expected. Remember, a low price typically results in a shortage due to increased demand.
Sources
- Given the following data, identify the amount of shortage or surplus ... - homework.study.com
- There is a shortage in a market for a product when A. the current ... - homework.study.com
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